Mainstreet Equity : MEQ Q2 2024 - Investor Presentation

Q2 2024 Investor Presentation

Cautionary Statement

Forward-Looking Information

Certain statements contained herein constitute "forward-looking statements" as such term is used in applicable Canadian securities laws. These statements relate to analysis and other information based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning: estimates related to the effect of rising interest rates on the Corporation, the effect that inflation will have on: (i) the Corporation's tenants and the effect on credit risk; and (ii) the cost of renovations and other expenses, disruptions effecting the global supply chain and energy and agricultural markets (including as a result of geopolitical turmoil including Russia's invasion of Ukraine and other geopolitical conflicts), future acquisitions, dispositions and capital expenditures, future vacancy rates, increase of rental rates and rental revenue, future income and profitability, timing of

refinancing of debt, access to low-costlong-term Canada Mortgage and Housing Corporation ("CMHC") insured mortgage loans, the potential changes in

interest and mortgage rates, the potential changes in inflation rates, completion timing and costs of renovations, benefits of renovations, funds to be expended on renovations in fiscal year 2024 and the sources thereof, increased funds from operations and cash flow, access to capital, minimization of operating costs, the Corporation's liquidity and financial capacity, the Corporation's intention and ability to make distributions to shareholders in fiscal 2024, improved rental conditions and decreased vacancy rates, the period of time required to stabilize a property, future climate change impact, the Corporation's strategy and goals and the steps it will take to achieve them, the Corporation's anticipated funding sources to meet various operating and capital obligations, key accounting estimates and assumptions used by the Corporation, the attraction and hiring of additional personnel, the effect of changes in legislation on the rental market, expected cyclical changes in cash flow, net operating income and operating margins, the effect of environmental regulations on financial results, the handling of any future conflicts of interests of directors or officers, the effects of cyber incidents on the Corporation and other factors and events described in this document should be viewed as forward-looking statements to the extent that they involve estimates thereof. Any statements that express or

involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions of future events or performance (often, but not always, using such words or phrases as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as forward-looking statements.

Forward-looking statements are based on management's beliefs, estimates and opinions on the date the statements are made, and the Corporation undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions should change except as required by applicable securities laws.

Management closely monitors factors that could cause actual actions, events, or results to differ materially from those described in forward-looking statements and will update those forward-looking statements where appropriate in its annual and quarterly financial reports.

No Solicitation

The presentation is not a solicitation to purchase securities of the Corporation and should not be considered an offering or solicitation document to purchase securities of the
Corporation.	Q3 Investor Pitchbook

© All Rights Reserved - MAINSTREET EQUITY CORP. TSX:MEQ

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Why Invest in Mainstreet?

LAND BANK

• CONDO CONVERSION

Density potential

WELL

ESTABLISHED OPERATION PLATFORM & MANAGEMENT TEAM

High operating

margin

24 YEARS BEST PERFORMING RESULTS SINCE INCEPTION ON TSX

All economic

metrics

THE

MAINSTREET

OPPORTUNITY

STRONG

BALANCE SHEET

Strong liquidity

$396M

99% CMHC debt

fixed at 2.93%

ACQUISITION

VALUE

Mid-market

best value across Western Canada

(Value-add case

studies pg. 31-35)

ACCELERATED

ORGANIC

GROWTH

Acquisition pipeline

&

$54 million NOI

Gap

© All Rights Reserved - MAINSTREET EQUITY CORP. TSX:MEQ

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Mainstreet Equity Corp.

A solid performer, continued organic non-dilutive growth since inception

Q3 Investor Pitchbook

Aligned shareholder interest: director and management ownership around 49%

We acquire underperforming mid-market apartment properties and reposition them in the market with a mission to provide Quality

Affordable Homes and improve the quality of life of Canadians

We are an add-value consolidator in the mid-marketmulti-family apartment market. We stabilize and implement revenue, operating and financing optimization strategies to achieve superior returns

Mid-Market Characteristics

• Typically less than 100 units
• Fragmented private ownership
• Under-managedasset
• Deferred maintenance
• Owners have limited access to capital
• Higher vacancy / Lower rents

We are constantly growing. YTD we own and manage 17,886* apartment and commercial units and several warehouses in Surrey, Calgary, Edmonton, Saskatoon, Regina and Winnipeg and other commercial space; total fair market value $3.22B

ESG compliant with a focus on continuous improvement

We are a Corporation not a REIT

Listed on the TSX in 2000

YTD total apartment suites owned 17,886

*Including 58 condo units held for resale, 5 vacant lands and 6 commercial buildings

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A proven solid performer since listing on TSX in 2000

24 YEARS OF ORGANIC DOUBLE-DIGIT GROWTH WITH LIMITED EQUITY DILUTION (Annual Growth 2000 - 2023)

17%

FFO/SHARE ($0.18 - $7.37)

1,370 (2000)

to

16%

IFRS VALUE ($90M - $3.05B)

17,886 (YTD 2024)

15%

REVENUE ($8M - $210M)	Apartment unit count

*Compounded Annual Growth Rate (CAGR)

GREAT CAPITAL ALLOCATOR TO MAXIMIZE SHAREHOLDER VALUE WITH NON-DILUTIVE GROWTH

Common Shares Outstanding

$4.90 - $187.91* /share	2023: 9,318,818
STOCK PRICE GROWTH (*as at Mar 31, 2024)	2000: 8,883,333

*Exercise of Stock options

© All Rights Reserved - MAINSTREET EQUITY CORP. TSX:MEQ

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Why Introduce Token Dividend?

Continue to

grow non- dilutive & organically

Abundant	Increase
acquisition
opportunities	Shareholder
& $396M	Base
liquidity
Token

Dividend

Insignificant	Improve
Amount	Liquidity
1% FFO	&
payout	Market Value

© All Rights Reserved - MAINSTREET EQUITY CORP. TSX:MEQ

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Our Value Chain Business Model

How does Mainstreet achieve its solid performance?

ACQUISITIONS Identify and buy under-performing rental units at prices well below replacement costs.

CAPITAL IMPROVEMENTS Increase the asset value of

Mainstreet's portfolio by renovating acquired properties.

OPERATIONAL EFFICIENCIES Minimize operating costs through professional management, efficient technology and energy-savingequipment.

VALUE ENHANCEMENT Reposition renovated properties in the market, as a Mainstreet branded product, for higher rents, and build and maintain customer loyalty through high levels of service.

FINANCING Maintain a sound capital structure with access to capital markets.

DIVESTITURES Occasionally sell mature real estate properties to redirect capital into newer, higher potential properties.

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Q2 2024, 15,246 units are stabilized out of the portfolio of 17,659 units *

YTD: 17,886 units*

(Including 58 condo units held for resale, 5 vacant lands and 6 commercial buildings)

13%87%

Unstabilized Stabilized

Apartment Business Driver

Existing rental apartments trading significantly below replacement cost

Management believes:

Current market rents do not justify new construction due to high costs

Increasing demand and limited supply will continue to create favourable rental market conditions

Mainstreet's Purchase Price	Market Value	Replacement Cost*
		(Build cost of comparable new apartments)
		Q3 Investor Pitchbook

© All Rights Reserved - MAINSTREET EQUITY CORP. TSX:MEQ

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Apartment Demand

EDMONTON

CALGARY

REGINA

SASKATOON

WINNIPEG

Lethbridge

Prince George

Population Growth: 36,560 (2022) [42% of total rental universe]

Rental Universe: 87,827 (2022) 91,185 (2023)

[Mid-market:62,527 (71%) (2022)

Vacancy Rate: 4.1% (2022) 2.3% (2023)

Population Growth: 49,754 (2022) [95% of total rental universe]

Rental Universe: 52,643 (2022) 55,859 (2023)

[Mid-market:30,967 (59%) (2022)

Vacancy Rate: 2.6% (2022) 1.4% (2023)

Population Growth: 4,429 (2022) [30% of total rental universe]

Rental Universe: 14,846 (2022) 15,045 (2023)

[Mid-market:13,679 (92%) (2022)

Vacancy Rate: 3.0% (2022) 1.4% (2023)

Population Growth: 7,666 (2022) [45% of total rental universe]

Rental Universe: 16,924 (2022) 18,067 (2023)

[Mid-market:14,230 (84%) (2022)

Vacancy Rate: 3.2% (2022) 2.0% (2023)

Population Growth: 12,930 (2022) [18% of total rental universe]

Rental Universe: 70,369 (2022) 72,423 (2023)

[Mid-market:45,263 (64%) (2022)

Vacancy Rate: 2.7% (2022) 1.8% (2023)

Population Growth: 2,976 (2022) [71% of total rental universe]

Rental Universe: 4,190 (2022) 4,393 (2023)

[Mid-market:3,923 (94%) (2022)

Vacancy Rate: 2.5% (2022) 2.3% (2023)

Population Growth: 260 (2022) [7% of total rental universe]

Rental Universe: 3,502 (2022) 3,664 (2023)

[Mid-market:3,054 (87%) (2022)

Vacancy Rate: 3.7% (2022) 2.8% (2023)

All numbers obtained from CMHC + Stats Canada (CMHC calculations)

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Apartment Demand

CHILLIWACK

ABBOTSFORD

SURREY

KAMLOOPS

PENTICTON

VERNON

COURTENAY

Population Growth: 2,581 (2022) [67% of total rental universe]

Rental Universe: 3,869 (2022) 4,068 (2023)

[Mid-market:3,869 (100%) (2022)

Vacancy Rate: 1.3% (2022) 1.4% (2023)

Population Growth: 3,127 (2022) [63% of total rental universe]

Rental Universe: 4,956 (2022) 5,038 (2023)

[Mid-market:4,481 (90%) (2022)

Vacancy Rate: 1.5% (2022) 1.2% (2023)

Population Growth: N/A

Rental Universe: 6,463 (2022) 7,345 (2023)

[Mid-market:4,915 (76%) (2022)

Vacancy Rate: 0.6% (2022) 1.5% (2023)

Population Growth: 2,271 (2022) [50% of total rental universe]

Rental Universe: 4,574 (2022) 4,758 (2023)

[Mid-market:4,464 (98%) (2022)

Vacancy Rate: 1.1% (2022) 1.3% (2023)

Population Growth: 273 (2022) [10% of total rental universe]

Rental Universe: 2,626 (2022) 2,686 (2023)

[Mid-market:2,626 (100%) (2022)

Vacancy Rate: 1.2% (2022) 1.5% (2023)

Population Growth: 1,267 (2022) [63% of total rental universe]

Rental Universe: 2,019 (2022) 2,038 (2023)

[Mid-market:2,019 (100%) (2022)

Vacancy Rate: 0.7% (2022) 1.6% (2023)

Population Growth: 1,017 (2022) [45% of total rental universe]

Rental Universe: 2,285 (2022) 2,475 (2023)

[Mid-market:1,936 (85%) (2022)

Vacancy Rate: 0.6% (2022) 0.9% (2023)

All numbers obtained from CMHC + Stats Canada (CMHC calculations)

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